National Republican. (Washington City (D.C.)) 1872-1888, 1887-06-22
Specially for Secretary FairchiId.

The lawyer who is selected for this task
should be one competent to determine the
weight and bearing OF all the words and
sentences used in the law, how contracts
are affected by existing statutes, and the
legal result OF substituting one thing for
another, both parties to contract agreeing
to the substitution.
The first law that 1t would be necessary
to examine can be found on page /, volume
l6, United States Statutes at Large, and Is
entitled "an act to strengthen the public
credit" This law pledges anew the faith Of
the United States for the redemption and
payment of all its debts, whether interest
bearing or non-interest bearing, aud its
closing sentence reads as follows:
But none of said interest-bearlng obligations
not already due shall be redeemed or paid be-
fore maturity unless at such time United States
notes are convertible into coin at the option
of the holder, or unless at such time bonds OF
the United States bearing lower rate OF inter
est than the bonds to be redeemed can be sold
at par in com.
What construction will the Secretary's
legal adviser put on that sentences What
does 1t meant Drop out portion Of It,
and then read it thus:
"But none of said interest bearing oblga-
tions not already due st1N be redeemed or paid
before maturity unless AZ such time bonds
of the United States bearing a 10 Ger rate Of in
tortst than the bonds TO be redeemed can be
sold al par in COIN"
"None Of these bonds shall be redeemed
or paid before maturity" that is plain
enough. The bondhoders cannot be re-
quired to take their money until the bonds
mature, "unlessn certainty contingency
arises. Webster makes 'unless" and tex
cept' synonymous terms, SO that "none of
the bonds shall be redeemed or paid before
maturity" except or unless certain con-
aition of affairs arisae.
What Is that condition? "Unless at such
time" What timer Any time before IN /
turity, Is 1t? "Unless at such time bonds of
the United States bearing lower rate OF
interest - ~ u can be sold at par in
COIN" Is that the time when bonds can bs
redeemed before maturity
That is question worth examining. II
the present condition OF the governments
finances, II 1t should be determined In the
affirmative, 1t would be worth mauy mil
lions of dollars to the government, besides
solving the problem OF how to dispose OF
the surplus and how to prevent any COO
traction Of the money market.
Let the Secretary's lawyer consider this
well, and the lawyer who considers it
ought not to have an Office or business
anywhere near Wall or Broad streets, or
have any connection Or business with bulls
and bears.
The rules laid down for constituting Ian
guage are very easy and simple. Here is a
proposition broadly stated that certain
thing "shall not be done" Then comes an
exception to the general proposition. What
does that exception meanS One rule OF
, construction adopted by the Supreme Court
is that the words used shall always be taken
to mean something. These words sat such
time" mean absolutely nothing, unless they
mean "such time" before the maturity of The
bonds, when "bOnds OF the United States
bearing less rate OF interest thi the
bonds to be redeemed can be sold at par In
coin.n
They mean nothing unless this construc-
tion is put upon them, because no matter
what other bonds OF the United States are
worth or would sell for, when those already
issued arrive at maturity, the government,
can redeem, them. So, to mean anything al
| all, the words sat such timen must be con
strued by the Secretary's lawyer to mean
Sat any time before the maturity of the
| bonds"
Would not the secretary's lawyer be
compelled to reconstruct this sentence In
al out the following language;
| But none of said interest-bearing obligations
shall be redeemed or paid before maturity
unless at any time bonds of the United States
can be sold at q lower rate OF interest, in which
| event 1t reserves the privilege of redeemnq
| any bond now issued.
But this law was passed VI MIrch l9, 1859,
and there are none of the bonds In exist
ence at that time, except the Pacific rail,
| road, but what have been redeemed. All the
bonds now unpaid are $3.50, ,00O,0 900 Of the
| four'and-a-halfs, which arrive at !'matu-
| rity" In 1891, and $727, ,000, 900 Of the fours
which arrive at "maturity" iu 1907, and
these were issued under law approves
July IA, 1870 (U. s. Stat, at Large, vol. 10
| page 272j.
We give the page and volume, for before
rendering an opinion the secretary's lawyer
had better read that law carefully. He
will find upon examining 1t that all the
bonds, the issuance OF which was provided
for by that law, were to replace those al
ready in existence, The law was an Offer
upon the part OF the United States 10 its
creditors to substitute one class of securl-
ties for another class, subject, Of course, 10
The conditions imposed by al the ktOs Of The
United States then IN existence.
The creditors accepted the proposal o
the United States, and the law became a
legislative contract between the sovereign
and the individual, binding alike upor
both parties, and subject TO all the condI
tions imposed both by the statute aud the
common Law. The Secretary OF the Treas,
ury was authorized TO sell tho new bond,
rs well as exchange them for the Old ones
but every dollar Of the money arising from
the sale had to be applied to the redemp
tion Of the bonds then out. Not dollal
could be used for any other purpose.
"a substitutlonn was effected OF ont